New Delhi: In a verdict claimed by both India and Pakistan as a victory for their case, a World Bank-appointed neutral expert on Monday cleared the Baglihar power project in Jammu and Kashmir with alterations, including reduction of dam height by 1.5 metres, one of the objections raised by Islamabad.

"We are happy overall. The dam structure is intact, the changes are only marginal," India's Water Resources Minister Saifuddin Soz said.

The reduction of the height would, however, have no impact on power generation capacity of the 450-mw project being built on river Chenab, Mr Soz told reporters, welcoming the final verdict of neutral expert Raymond Lafitte on the dispute.